Los Angeles daily herald., 1887-05-24

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Cs.operatiOn and PrOfit-Sharfng
Only lately, within a year or SO,
has public attention heen seriously
arrested by experiments here and
there in solving the labor problem
by making the operatives OF large
ma nufactories their own employers,
either under the cooperative or the
profit-sharing systems. The outcome
of practical experience, so far, is
favorable. A New York clothing
house has tried profit-sharing for one
year, and with success in all respects,
employers and employees being mutu-
ally pleased. Mayor Hewitt, of New
York, is a member of great iron
m anufacturing firm. Some years ago
Mr.. Hewitt was convinced of the
economy and general benefits of
profit-sharing, but did not then, when
he should, inaugurate the system.
But he has now made an offer to the
employees, the main features of which
are that they shall take charge OF the
works, elect their own officers and
man ayers, adjust the working system.
s1d 60 on with the industry, guaran-
teeing to the owners of the plant and
good will per cent, after a due
m argin of reserve for repairs and the
keeping of the works up to the best
standard of excellence. But an
element in the scheme is the fact that
for some years the works have not
yielded good profit to the firm, and
In recent years have suffered loss,
still the wages have not been de-
creased. When, therefore, the wage
winners demand an increase of pay,
the firm say to them: Take the
business and see for yourselves
that we have not in fact drawn
from the business as good
wages as the employees. But we
believe the business will yield a
living to you under the proht-sharing
plan, which will conserve economy
and augment your energy. Nearly
all the employees are members of the
Knights OF Labor, and they have
taken time to consult with the order
before responding to the offer. This
offer will open to the wage-winners
the employer side of the question.
They will discover the exact relation
between profits and wages, and
losses and wages; just what is in
volved in paying employees a fixed
sum regardless of the fluctuations of
trade and commerce, and in this re-
spect the teaching will be of the
highest value to skilled workers, and
tend to disabuse the minds of en-
ployes OF many gross errors. In
pr ofit-sharing, generally the proprie-
tor retains the position of employer,
as illustrated by the Wannemaker
experiment at Philadelphia; the
We:nstock & Lubin successful exper-
iment in Sacramento; the demon
str ated feasibility of the system by
the Nelson manufacturing concern o
St. Louis; the Bon Marche OF Paris
the famous establishment of M
Goodin, at Guise, France; the Haz
ards Wooden Mills, of Rhode Island
the Pillsbury FIGURING Mills, OF Min
neapolis; the Pape Betting Company
of New Hampshire; Allen q Co. ant
the Hoffm an & Billings Manufacture
ing Com pany, of Wisconsin. Bu
under the Cooper, Hewitt & Co.'S
offer the employers absolutely with
draw, remaining, if at all, in the ca
pacity OF proft-sharers with the 9TH
ers, their relations as lessons being
distinct from that OF employers, be-
cause the management and response
bility all passes over to the workers.
An instance of the practical opera
ton of the profit-sharing system has
just been made public. The shoe
factory of Asa Cushman q Co., in
the city of Auburn, Maine, em.
ploys no less than seven hun.
dred men, women and children
throughout the year. One year age
the firm proposed to the workers to
set aside fair amount for interest on
the capital invested, for risks, main
tenance, depreciation, etc., and then
to divide any remaining profit be-
tween employers and workers, in the
proportion that the labor bears to the
cost OF the goods. The firm retained
control, but a committee OF the work.
ers was permitted to inspect the bust.
ness and have knowledge OF the de-
tails, in order that they could report
that good faith had been kept. The
proposition was accepted, but with